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Nantec Company Is Considering a Three Year Financial Lease

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Nantec Company is considering a three year financial lease.A cash flow schedule was developed that reflects the cost of the machine, CCA tax shields and after tax lease payments.The company has a 12% return requirement and a 40% tax rate.
What is the value of the lease?

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Definitions:

Free Trade

An economic policy that allows imports and exports to occur without governmental tariffs, quotas, or other restrictions, promoting international trade.

Foreign Investment

Capital investment made by individuals or entities based in one country into the businesses or assets of another country.

Write Off The Debt

is a financial action where a creditor cancels or forgives the debt owed by a debtor, often due to the inability of the debtor to pay back.

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